Ep 359: How bad does a property need to be to warrant selling it?

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In this episode, Stuart tackles a tricky but important question: how bad does a property need to be to justify selling it?

If you suspect a property in your portfolio isn't investment-grade, Stuart walks through a step-by-step process to assess whether replacing it could make you significantly better off—after factoring in selling costs, stamp duty, buyer’s agent fees, and capital gains tax.

He explains how to:

• Estimate your current property’s future return
• Set a realistic benchmark for what investment-grade property should deliver (2% yield + 7% capital growth)
• Weigh opportunity cost and transactional expenses
• Use detailed scenario modelling to compare long-term wealth outcomes

He also highlights key questions to consider before making a decision:

• Can you afford to upgrade to a superior asset?
• Will underperformance materially impact your retirement plans?
• Do you have enough time before retirement to justify the switch?
• Could you hedge by buying a better asset now and selling the underperformer later?

This episode is packed with real numbers, smart frameworks, and cautionary insights. If you're unsure whether to hold or sell a lagging property, this is essential listening.

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Important

This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.